Randomized trial demonstrates the effect of foreign direct investment on financial performance in Iraq, highlighting key ratios and implications for growth.
Key Points
The aim is to examine how foreign direct investment affects the economic development of Iraq's Northern Region, particularly the financial performance of international oil companies.
Analyzed nine financial ratios for international oil companies from 2011 to 2019.
Utilized random effects panel estimation analysis to assess the relationship between financial ratios and company revenues.
Evaluated the impact of crude oil prices on financial outcomes of international oil companies.
ExxonMobil outperformed peers in ROA, ROE, ROIC, Interest Coverage Ratio, and Debt/Equity Ratio.
Genel Energy excelled in Current and Quick Ratios, while Rosneft and Gazprom led in Gross Profit Margin and Working Capital, respectively.
A significant influence of crude oil prices on financial performance was uncovered.